Bank of America Increases US Minimum Hourly Wage to $25 by 2025

Rhea-AI Summary

Bank of America has announced a plan to increase its U.S. minimum hourly wage to $25 by 2025, building on a previous increase to $20 in March 2022. Additionally, all U.S. vendors must now pay employees at least $15 per hour, with over 99% of vendors already compliant. Since 2010, the company's minimum hourly wage has risen by 121%. The firm's commitment to competitive wages aims to attract and retain top talent, demonstrating its focus on responsible growth and a positive workplace culture.

Positive

• Company to raise minimum hourly wage to $25 by 2025, enhancing employee compensation.
• Over 99% of U.S. vendor firms comply with new $15 hourly wage requirement.
• Minimum wage increase reflects Bank of America's commitment to responsible growth and employee satisfaction.

Negative

• None.

Today, Bank of America announced it will raise its U.S. minimum hourly wage to $25 by 2025. In March last year, the company raised its U.S. minimum wage to $20 per hour.

In addition, Bank of America announced that all its U.S. vendors are now required to pay their employees dedicated to the bank, at or above $15 per hour. Today, over 99% of the company’s more than 2,000 U.S. vendor firms and 43,000 vendor employees are at or above the $15 per hour rate, as a result of the implementation of this policy.

“A core tenet of responsible growth is our commitment to being a great place to work which means investing in the people who serve our clients,” said Sheri Bronstein, chief human resources officer at Bank of America. “That includes providing strong pay and competitive benefits to help them and their families, so that we continue to attract and retain the best talent.”

Bank of America’s increase to paying $25 per hour builds on the company’s history of being an industry leader in establishing a minimum rate of pay for its U.S. hourly employees. Since 2010, the company’s minimum hourly wage will have increased by more than 121% (an increase of nearly $14 per hour). In the last four years, Bank of America raised the minimum hourly wage to $15; in 2019 it rose to $17 and in 2020, to $20 — one year ahead of schedule.

Bank of America’s pay-for-performance philosophy reinforces the company’s core values and culture by inspiring employees to do great work, encouraging and retaining talent, and building trust within teams. Its efforts have been recognized by a number of external organizations including LinkedIn and Fortune, as the only financial services company included in Fortune’s “Best Big Companies to Work For” list for three consecutive years.

Other recent announcements include:

• Amidst a Dynamic Home Buying Market, 70% of Prospective Buyers Looking For Vibrant and Connected Communities
• Bank of America Increases Environmental Business Initiative Target to $1 Trillion by 2030
• Bank of America Increases Commitment to Advance Racial Equality and Economic Opportunity to $1.25 Billion
• Bank of America Reaches Milestone; Company Has Distributed 25 Million Masks to Underserved Communities Across the U.S.
• Bank of America directs over $22 million in grants to national and local nonprofits supporting people and communities of color
• Bank of America Community Development Banking Provided Record $5.87 Billion in Lending and Investing in 2020, Shattering Previous Year’s Record $4.88 Billion
• Bank of America Triple Affordable Homeownership Commitment to $15 Billion
• Bank of America Announces Investments in 40 Private Funds Focused on Minority Entrepreneurs for Approximately $150 Million
• Bank of America directed more than $13 million to Native American communities hardest hit by the Coronavirus in 2020
• Bank of America gives 21 higher education institutions $1 million each as part of recently announced $25 million jobs initiative
• Bank of America issues $2 billion Equality Progress Sustainability bond, first-of-its-kind broad ESG-themed security designed to advance racial equality, economic opportunity and environmental sustainability
• Bank of America Directs $300 Million of Its $1 Billion, Four-Year Commitment to Advance Racial Equality and Economic Opportunity
• Smithsonian announces “Race, Community and Our Shared Future” initiative, Bank of America commits $25 million
• $1 Billion, four-year commitment to support economic opportunity initiatives
• Committing $250 million in capital and $10 million in philanthropic grants to CDFIs

Bank of America
At Bank of America, we’re guided by a common purpose to help make financial lives better, through the power of every connection. We’re delivering on this through responsible growth with a focus on our environmental, social and governance (ESG) leadership. ESG is embedded across our eight lines of business and reflects how we help fuel the global economy, build trust and credibility, and represent a company that people want to work for, invest in and do business with. It’s demonstrated in the inclusive and supportive workplace we create for our employees, the responsible products and services we offer our clients, and the impact we make around the world in helping local economies thrive. An important part of this work is forming strong partnerships with nonprofits and advocacy groups, such as community, consumer and environmental organizations, to bring together our collective networks and expertise to achieve greater impact. Learn more at about.bankofamerica.com, and connect with us on Twitter (@BofA_News).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

www.bankofamerica.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20210518005858/en/

FAQ

What is Bank of America's new minimum wage for U.S. employees?

Bank of America announced it will raise its U.S. minimum hourly wage to $25 by 2025.

When was Bank of America's last wage increase?

Bank of America last raised its U.S. minimum wage to $20 per hour in March 2022.

How many U.S. vendors are compliant with the new wage requirement?

Over 99% of Bank of America's more than 2,000 U.S. vendor firms comply with the $15 per hour wage requirement.

What percentage increase will the minimum wage represent since 2010?

Since 2010, Bank of America's minimum hourly wage will have increased by 121%.

Who is the Chief Human Resources Officer at Bank of America?

Sheri Bronstein is the Chief Human Resources Officer at Bank of America.